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Banking and payments tech vendor D+H up for sale?

DH Corporation (D+H) has set up a committee to review its possible sale, it is understood.

As reported earlier this month by National Post, the Canadian company brought together a group of independent directors to review expressions of interest from third parties to acquire the banking tech vendor.

No formal offer has been received, however, and there are no guarantees that any transaction will result from the committee’s work, Banking Technology understands.

It is believed Fiserv was among those potentially interested, but passed on the opportunity. D+H and Fiserv are direct competitors (with Fiserv being the larger of the two).

Credit Suisse and RBC Capital Markets were recruited as financial advisors and Stikeman Elliott LLP as a legal advisor.

D+H’s stock currently trades at 10x Fy17 PE, which is very cheap compared to the company’s US peers and has seen consensus earnings come down a lot in the last few months.

D+H’s core business used to be cheque printing for Canadian banks, but with the decline of cheques the company tried to diversify – largely via M&A.

In 2013, it purchased a US-based provider of core banking and lending software, Harland Financial Solutions, for $1.2 billion in cash.

Harland’s flagship core offering, PhoenixEFE, is well established among small and mid-tier banks and credit unions in the US.

Hot on the heels of the round-up on 18 August, here’s another blockchain and Bitcoin report. Featuring D+H Corporation (now Finastra), Visa, BTCS and Blockchain Global. A patent filing frenzy seems to be occurring at present. Following on from Bank of America filing three new patents using blockchain earlier this month, we now have D+H […]

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